This study looks at the evolution of the financial aid process as a function of higher education administration and its impact on the recruitment and retention of college students. It illustrates the effects on enrollment of differing financial aid strategies and recommends possible directions for meeting the challenges of the 21st century. Discussions focus on the following topics: (1) the institutional need for financial aid; (2) the relationship of aid and costs; (3) programs that work in reverse; and (4) targeting of financial aid to enrollment goals. The following financial aid packages are also examined: uniform self-help; self-help varied by ability to borrow; self-help varied by desirability; self-help varied by ability to borrow and desirability; admit/deny; aid-conscious admission; merit awards; renewals; equity packaging; and differential and preferential packaging. Contains 48 references. (GLR)